After months of discussion and dissension, a final agreement to transition services, assets and finances to The Woodlands Township has been unanimously approved.

The agreement, touted as the second most important document for the future of The Woodlands after an agreement to stop annexation by Houston, was approved Wednesday by The Woodlands Township and the Community Associations of The Woodlands, which represents homeowners and business interests in the community.

"It means that residents will be insured an ordered transition of services to the new township," said Jeff Long, president of The Woodlands Community Association homeowners board and a member of the team that negotiated the deal. "It was extremely important to the associations that this be seamless and to protect the interests of the residents."

The agreement also will be considered by agencies that provide services in The Woodlands — The Woodlands Fire Department, The Woodlands Recreation Center and The Woodlands Community Service Corp. — which are expected to approve the terms.

Tax plan

Under the agreement, residents and businesses would begin to pay property taxes and received services from The Woodlands Township beginning in 2010, contingent upon the passage of a amendment by the state Legislature that would allow the entity to offer tax abatements to businesses. If the amendment is approved, the township also would take over administration of the covenants, the strict residential controls that are the hallmark of the community, in 2010.

"Our board is in step with the process and where we are going and is wholeheartedly behind it," said Nelda Luce Blair, chairwoman of The Woodlands Township board.

The Community Associations of The Woodlands, which includes three organizations that operate the community and its services, would continue until 2012, at which time they could be disbanded or reorganized to handle different functions. The agreement also provides for the continuation and funding of the village associations, local level entities that often provide social functions for residents.

"It means that the objectives that the community came up in the transition can now be put into motion with the approval of the Community Associations," said Joel Deretchin, president of The Woodlands Association, representing newer villages, and The Woodlands Commercial Owner Association, representing business interests in Town Center. "It consolidates and simplifies government. It is moving us toward self-determination. It is avoiding annexation. It is providing tax deductions. All those things are put in motion with the overwhelming approval of this agreement."

Service plan

Under the agreement, the township would take majority control of some of the service organizations, including The Woodlands Fire Department, The Woodlands Recreation Center and The Woodland Community Service Corp., which provides municipal types services, once they begin funding those entities. They would fully appoint those boards beginning in 2010.

Excluded from this agreement will be the Community Associations building at 2201 Lake Woodlands Drive as well as the surplus for The Woodlands Community Association homeowners board.

The surplus, estimated at $7.2 million in 2008, and proceeds from the potential sale of the building will be held solely by The Woodlands Community Associations for the benefit of residents in older villges, including Grogran's Mill, Panther Creek, Cochran's Crossing and Indian Springs, east of Falconwing Drive.

The WCA used its surplus to achieve a 14 cent per $100 valuation assessment in 2008, and officials have said they may use the surplus again in 2009 to keep assessments lower.

Even critics of the new government gave a vote of approval after raising some last minute concerns.

"It's consistent with the memorandum of understanding," said WCA board member Cheryl Crandall Tangen, referring to the framework of the agreement passed in October.

Tangen noted while the village associations will continue and be funded, the agreement expires in 2012 without any assurances that those grassroots entities would continue.

Questions ahead

The final agreement still leaves several unanswered questions, including the future role of the developer, and the fate of residents that live in parts of Grogan's Forest, Windsor Hills or other townhome developments that are not part of The Woodlands organizations. Windsor Hills is located in Conroe and parts of Grogan's Forest are located in Shenandoah. Carlton Woods residents also will have to negotiate a separate deal because they receive a rebate from TWA for supplemental services they provide, which cannot exist under the new structure.

Those agreements will be negotiated at a future date, said Mike Page, an attorney for the township.

Peggy Hausman, a member of WCA and the township board, also expressed ongoing concerns over funding issues, future Woodlands expansion and the role of the Development Standards Committee, a policy making board for property renovations in older villages.

The DSC will continue until 2014, two years after the Community Associations could disband. Under the township, there is no guarantee that the committee would retain building setback and height requirements, which may allow large commercial projects to be built adjacent to existing neighborhoods.

While the agreement allows The Woodlands Community Association to retain its surplus, it does little to control capital spending, which will be inherited by the township in 2012. The agreement indicates that the associations will stick to their approved budgets and five-year plans, which includes $10.6 million in debt for new parks in The Woodlands Association. The WCA is expected to have a surplus and no debt.

Future plans include two new fire stations in Creekside Park and Indian Springs and the replacement of the Central Fire Station in Grogan's Mill, new parks and pathways in Creekside Park and Sterling Ridge, a new phase of Bear Branch Park and the replacement of older play equipment, said Monique Sharp, assistant general manager of the Community Associations.

The agreement, in its current form, does not prohibit The Woodlands Development Co. from expanding the community and imposing covenants and ultimately, new services on new land, without the ability to collect taxes. Page assured the boards that a provision will be inserted in the agreement to limit the agreement to the boundaries that exist today.